Gearing instalments’ FOFA impact
Financial planners who receive remuneration based on clients' on-going gearing instalments may find themselves impacted when the Future of Financial Advice (FOFA) changes cut-in on 1 July.
That is the assessment of Association of Financial Advisers (AFA) chief executive, Brad Fox, who said the nature of such arrangements meant they would not be picked up in the grandfathering provisions within the FOFA changes.
He said advisers would need to check the status of their relationships with particular clients to determine the degree to which they were likely to be affected.
"If they are taking remuneration which flows from an on-going gearing arrangement on the part of their clients, then they may well be impacted," Fox said.
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